The Company | Investment Highlights

A Diversified Fleet of Power Generation Assets

  • Diverse group of 23 power projects totaling 1,407 MW (net ownership), located in eleven U.S. states and two Canadian provinces; 21 projects currently in operation (1,327 MW net ownership)

  • Projects are well diversified based on electricity and steam customers, regulatory jurisdictions, and regional power pools

  • 95% of our power generation is "clean power" (42% renewable and the balance natural gas)

Demonstrated Operating Performance of Projects

  • Projects have a demonstrated track record of high availability and reliability

Stable Power Purchase Agreements (PPAs) with Strong, Diverse Utility Customers

  • Majority of projects sell electricity and steam to utilities and large commercial and industrial customers under long-term PPAs that have expiration dates ranging from 2020 to 2043

  • Cash flows derived from the sale of electricity under long-term PPAs typically designed to pass through fuel cost fluctuations

  • Weighted-average remaining PPA term of approximately 5.6 years; managing through near-term PPA expirations and opportunistically seeking to extend PPAs prior to expiration at select projects

  • Diversified customer base, consisting mostly of regulated electric utilities with investment-grade credit ratings from Standard & Poor's (S&P)

Strong In-House Operations and Partnerships with Experienced Operators

  • Approximately 75% of our projects are operated and maintained by our seasoned team at Atlantic Power

Delivering on Balance Sheet and Cost Reduction Priorities

  • Reduced consolidated debt by approximately $1.2 billion since year end 2013, and reduced debt at equity-owned projects by approximately $80 million

  • Cash interest savings associated with this debt reduction and re-pricings of our credit facilities are approximately $89 million on an annualized basis

  • Leverage ratio of 3.6 times at March 31, 2020; amortizing term loan structure results in additional deleveraging over time

  • Stable liquidity of approximately $125 million, pro forma for recent use of cash in Substantial Issuer Bid, and improved credit profile

  • Reduced overhead costs by more than 60% from 2013

Balanced Approach to Capital Allocation

  • Since December 2015, have invested $72 million in the repurchase of approximately 33.3 million shares at an average price of $2.16 per share

  • Since June 2017, have invested US$25.5 million equivalent in the repurchase of approximately 2.1 million preferred shares at an average discount to par of 37%; implied after-tax returns ranging between 10 and 12%

  • In 2018 and 2019, invested approximately $45 million to acquire the remaining 50% interest in Koma Kulshan hydro facility, two biomass plants in South Carolina and equity interests in two biomass plants in Michigan and North Carolina; PPAs expire between 2027 and 2043; expected average annual EBITDA contribution through 2027 of $8 million to $10 million

  • In 2013 through 2017, invested $25 million to enhance value of existing projects by increasing output, reducing costs and improving efficiency; compelling risk-adjusted returns